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Insight for Sunday 21 November 2010

After weeks of tense speculation, it was confirmed late last month that the filming of The Hobbit would take place in New Zealand.

It will cost the tax payer at least an extra $20 million, taking the total Government subsidy to about $100 million.

In a controversial move changes to the labour laws were also made.

So were the Hobbit films a prize worth fighting for?

Sue Ingram investigates.

Hobbit houses dot a green Waikato hill - where the Hobbiton scenes were filmed in Matamata

Photo:Tourist numbers have increased dramatically in Matamata where the Hobbiton scenes for Lord of the Rings were filmed.